VANCOUVER, CANADA - TheNewswire - January 14th, 2020 - Sitka Gold Corp. (CNSX:SIG.CN) (FSE:1RF) (the "Company" or "Sitka") is pleased to announce that it has entered into an agreement with StrikePoint Gold Inc. to acquire the newly road accessible Mahtin Gold Property (the "Property"), located in the Clear Creek, Big Creek and Sprague Creek districts in the heart of the Yukon's Tintina Gold Belt and within the Tombstone Gold Belt, mid-way between Victoria Gold's Eagle Gold Project, which went into production in September, 2019, and Golden Predator's Brewery Creek Gold Mine, which recently received Government and First Nation's support for re-starting production (Figure 1).
- Acquisition creates a district scale contiguous land package totaling 1,579 mining claims within the fertile highly prospective Tombstone Gold Belt region. This belt hosts Victoria Gold's Eagle Deposit (3.6 million ounces Au)(1), Golden Predators' Brewery Creek Deposits (1.5 million ounces gold)(2) and AM Gold's Red Mountain Deposit (1.9 million ounces gold)(3) as well as numerous placer gold deposits. The Tombstone Gold Belt is within the larger Tintina Gold Belt (Figure 1), which also hosts Kinross Golds' Fort Knox deposit in Alaska (3 million ounces of gold)(4).
- The Mahtin property comprises 1447 quartz mining claims covering 30,242 hectares and is contiguous to the east with Sitka's 132 claim, 2,600 hectare RC Gold Property (Figure 1).
- Similar geology and regional proximity to several intrusion related gold deposits.
- Located at the headwaters of Clear Creek, an active prolific placer mining district, Sprague Creek, a past producer, and Big Creek, a newly discovered gold bearing drainage that recently went into production.
- Active Class 3 exploration permit which allows for a variety of exploration on the property, including drilling.
- Minimal carrying costs as most claims are credited with several years assessment work.
- In addition to the exploration work, Strikepoint also conducted several water sampling and ecological surveys on site to establish preliminary baseline data. The local First Nation of the Na-Cho Nyak Dun was also engaged on several occasions.
- Recent work done on the property (2017) confirmed a gold anomaly identified in 2012, with gold grades from trace to 9.2g/t in the 2017 sampling campaign(5).
Cor Coe, Director and CEO of Sitka Gold, states: "This acquisition creates a district scale land package within the fertile highly perspective Tombstone Gold Belt that enables the Company to proceed with a much larger exploration program and reflects the Company's strategic focus on finding high quality gold projects in positive mining jurisdictions with the potential to host large-scale gold deposits. With this acquisition, Sitka is well positioned within the Tombstone Gold Belt where several intrusion related gold deposits have been discovered and where the only active gold mine in the Yukon became operational in September, 2019."
Figure 1. Sitka Gold RC Gold and Mahtin Gold Property Location
Exploration activity has been occurring on the Mahtin property since the early 1900's with almost all of this work focusing on skarn style silver, tin and base metal mineralization on the margins of the Sprague Creek and Bos stocks, two mid Cretaceous intrusions similar in age and composition to the intrusions which host the Eagle (Victoria Gold), Brewery Creek (Golden Predator), Red Mountain (AM Gold) and Fort Knox (Kinross) deposits. The Yukon Geological Survey has documented 8 Minfile occurrences on the property and $3.3 million of assessment expenditures (including $588,000 spent by Strikepoint in 2017).
The most extensive recent exploration programs carried out on the property were completed by Ryan Gold from 2010 to 2013 and Strikepoint in 2017. Ryan Gold completed mapping, Candig trenching, ground and Airborne Geophysics and collected 18,400 soil samples. The majority of exploration work done on the Property was mapping and soil sampling with only limited follow up drilling totalling 20 drill holes and 2049 metres comprised of RC, RAB and diamond drilling over the property.
Several gold in soil anomalies exist on the property and are shown in Figures 2 and 3 below. Soil sample results of over 1,000 ppb gold occur in these areas. Grab rock sample results are shown in Figures 4 and 5 and range from below detection limit to 9.2 g/t gold. Of particular note on Figure 5 are two grab samples from sheeted quartz veins within the Bos stock that returned 3.37 and 2.74g/t Au respectively. These samples provide some of the best evidence to date of the potential for intrusive hosted gold mineralization within the Bos stock, but have not yet been followed up with detailed exploration including drilling.
Figure 2. Gold in soil results May-Qu(5)
Figure 3. Gold in soil anomaly Mahtin North(5)
Figure 4. Rock samples (grab) Mahtin North(5)
Figure 5. Surface Grab Samples May-Qu(5)
The Company intends to complete a full compilation of the extensive historic data including the 18,400 soil samples collected by Ryan Gold in order to design a 2020 exploration program to fully test the intrusion related gold potential of the Bos and Sprague creek stocks.
(3 ) http://resourceclips.com/2012/03/08/am-gold-reports-yukon-red-mountain-property-gold-resource/
The Mahtin Gold Property comprises claim groups totaling 1447 quartz mining claims from one vendor, Strikepoint Gold Resources. Sitka Gold Corp has entered into a purchase agreement to acquire a 100 % interest in the Property subject to certain underlying agreements.
The purchase price for the property is 2.0 million common shares of Sitka Gold Corp. at a deemed price of $0.20 / share. Underlying royalties tallying 3% NSR exist on the property and can be reduced to 2% by the purchase of 1% for $1,000,000. The agreement is subject to all necessary regulatory approvals and third party consents. Closing is expected to occur on or about January 31, 2020.
Bonus payments are payable to an underlying royalty holder if exploration expenditures ("Exploration Expenditures") for the Property Area reach $7,500,000, $15,000,000 or $25,000,000, for an aggregate Bonus Payment of $2,250,000 in respect of any Property area, with $750,000 payable on any one of these expenditure targets being met. Exploration Expenditures on the Property at the time of execution of this Assignment and Assumption Agreement total $1,868,988.
Sitka Gold Corp. is a mineral exploration company headquartered in Canada and managed by a team of experienced mining industry professionals. The Company is focused on exploring for economically viable mineral deposits with its primary emphasis on gold, silver and copper mineral properties of merit. Sitka currently has an option to acquire a 100% interest in the RC Gold property in the Yukon, an option to acquire a 100% interest in the Burro Creek Gold property in Arizona and owns a 100% interest in its Coppermine River project in Nunavut and the Alpha Gold property in Nevada. Directors and Management own approximately 25% of the outstanding shares of Sitka Gold, a solid indication of their alignment with shareholders' interests.
The technical content of this news release has been reviewed by Greg Dawson, P.Geo, Director the Company, and a Qualified Person (QP) as defined by National Instrument 43-101. The technical data has been obtained from public sources and company websites and is believed to be correct as presented, although the QP has not reviewed the original data sources.
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